American Financial Group

American Financial Group was founded in 1959. The company, based in Cincinnati, Ohio, is primarily engaged in property and casualty insurance, focusing on specialized commercial products for businesses. Over the years, it has grown into a diversified financial services company, expanding its operations into annuities and life insurance.

In 1995, American Financial Group Inc. was created through the merger of American Financial Corporation and American Premier Underwriters. This merger was engineered by Carl H. Lindner Jr., a notable Cincinnati businessman. The new company continued to focus on insurance and investments, solidifying its position as a leading provider of specialty insurance products.

In 2003, American Financial Group completed the acquisition of Transport Insurance Company, enhancing its market presence in the specialty commercial insurance sector. This acquisition allowed AFG to expand its product offerings and provide more comprehensive solutions to its clients. It further strengthened AFG's portfolio in the property and casualty insurance market.

American Financial Group sold its interest in Migdal Insurance, one of Israel's largest insurance companies, in 2007. This move was part of AFG's strategy to focus more on its core markets in the United States. The sale to Generali Group was valued at approximately $835 million, and it allowed AFG to allocate resources more efficiently towards its domestic operations.

In 2012, American Financial Group completed the spin-off of its lifestyle and residential real estate business, which became a separate, publicly-traded company called National Interstate Corporation. This strategic move allowed AFG to focus more on its core insurance operations, while the newly independent company concentrated on growing the real estate business.

American Financial Group acquired Summit Holdings Southeast Inc., a leading provider of workers' compensation insurance in the Southeast United States, for approximately $250 million in cash. This acquisition, completed in December 2014, significantly expanded AFG's presence in the workers' compensation insurance market, aligning with its growth strategy.

In 2016, American Financial Group exited its Lloyd's of London operations, selling its interests to focus on its core specialty property and casualty insurance operations in the United States. The divestiture was part of a strategic plan to streamline operations and focus solely on markets where AFG had a significant competitive advantage and expertise.

American Financial Group acquired ABA Insurance Services, a leading insurer for banks, small businesses, and non-profit organizations, in 2019. ABA Insurance Services was known for its market specialization and strong service record. This acquisition underscored AFG's commitment to providing specialized insurance products and expanding its offerings in niche markets.

American Financial Group sold its annuity business to Massachusetts Mutual Life Insurance Company (MassMutual) for $3.5 billion in cash as of December 31, 2020. This transaction allowed AFG to focus on its core property and casualty insurance operations. The sale included Great American Life Insurance Company and other affiliated entities.

In September 2021, American Financial Group acquired Verikai Inc., an insurance technology startup that utilizes machine learning and data analytics to estimate risk and improve underwriting. This acquisition reflected AFG's interest in leveraging technology to enhance its insurance operations, particularly in specialty markets and innovative solutions.